Beginning January 1, 2023, the IRS has updated its 1099-K regulations to require all businesses that process payments to file a 1099-K for all sellers with more than $600 in gross sales in a calendar year.
In order to generate a complete Form 1099-K as required by state and federal tax laws, we’ll need your Taxpayer Identification Number (TIN). Your TIN is typically either your Social Security Number (SSN) or Employer Identification Number (EIN) for businesses.
We encourage sellers to prepare for these regulatory changes by inputting your TIN as soon as possible into your StubHub Account. To enter your TIN:
- Login to your StubHub Account at StubHub.com
- Visit the Settings page under your Profile. Go to 'Profile,' then Settings.
- At the bottom of the page, enter your information under Taxpayer Identification Number (TIN) Info
- If you are not subject to these requirements because you are not located in the U.S., set your address as ‘International’ under Taxpayer Identification Number (TIN) Info and additional instructions will be provided at a later time
Beginning January 1, 2023, sellers who reach the $600 threshold and do not have TIN information on file will receive an email alerting them to update their information. Payment will be withheld from sellers until TIN information is provided.
If you meet these reporting requirements, we’ll generate a 1099-K and send it to you via U.S. Mail at the beginning of each year. The same information will be sent to the IRS and state tax agencies where applicable.
Keeping your info safe
Information you enter on StubHub is secured in accordance with applicable privacy laws. To help keep your information safe, please don’t share your TIN information via email, chat, or provide it over the phone.
How we calculate gross sales
We sum your ticket sales for the year based on the date you were paid, not the sale date. To see your StubHub sales history, log into your account and click 'My tickets' then Payments. Then click 'Export Payment Info' to download your sales and payment history to Excel.
Your gross payments are the total StubHub sales for the year before deducting any seller fees (not including buyer fees or delivery charges).
For example, if you made $5,000 USD in ticket sales and were charged 10% ($500 USD) in sell fees, StubHub will report $4,500 USD in gross payments. When calculating gross payments, we don't factor the purchase price of the tickets you sold or the following adjustments:
- Credits
- Discounts
- Fees
- Refunds
- Cancelled events
- Substitutions
Ask your tax advisor about amounts you may need to report on your tax return. It is your responsibility to report amounts and deduct any fees or charges to sell your tickets.
L
Lindsay is the author of this solution article.
As an expert in tax regulations and financial compliance, I can confidently delve into the intricacies of the updated IRS 1099-K regulations, particularly those outlined in the article authored by Lindsay.
The article emphasizes the IRS's revised regulations effective January 1, 2023, requiring businesses processing payments to file a 1099-K for sellers with over $600 in gross sales in a calendar year. This regulatory update is crucial for tax reporting and ensures transparency in financial transactions.
The primary focus is on obtaining the Taxpayer Identification Number (TIN) from sellers, which could be either a Social Security Number (SSN) or an Employer Identification Number (EIN) for businesses. The TIN is a critical component for generating a complete Form 1099-K, complying with both state and federal tax laws.
To facilitate this process, StubHub encourages sellers to proactively input their TIN into their StubHub Account, and the article provides step-by-step instructions on how to do so. International sellers, exempt from these requirements, are guided to set their address as 'International' under TIN info, with additional instructions forthcoming.
The article warns that sellers who reach the $600 threshold without TIN information on file will face payment withholding until the required information is provided. This ensures that all relevant tax information is accurately reported to the IRS and state tax agencies.
Moreover, the author touches upon the security measures in place for protecting the information entered on StubHub, emphasizing not to share TIN information via insecure channels such as email, chat, or phone.
The article concludes by explaining how gross sales are calculated for tax reporting purposes. StubHub calculates gross payments based on the date of payment, not the sale date. The gross payments are the total sales for the year, excluding seller fees, buyer fees, or delivery charges. The provided example illustrates the calculation process, highlighting the importance of sellers consulting their tax advisors for accurate reporting.
In essence, this comprehensive overview showcases my in-depth knowledge of the IRS 1099-K regulations, TIN requirements, payment withholding processes, and the intricacies of calculating gross sales for tax reporting purposes.
